Chicago Corn and Soybean Futures Flat to Slightly Higher on Wednesday
May 09, 2018
Grains slightly lower in the overnight. Argentina weather damages soybean quality. China ramps up inspections on U.S. pork imports.
Additional precipitation is expected across NE, IA, S. MN, WI, N. IL and MI over the next 1-5 days, bringing 2-3 inches across the central and northern midwest. The 6-10 day forecast shows additional precipitation is expected in MO, E. KS, W. OK and parts of the TX panhandle which will benefit the winter wheat crop.
South American Weather
Rains in 6-15 day forecast for central and southern Brazil will help late pollinating corn. Heavy rains recently in Argentina has bogged down harvest and damaged crop quality. Rosario grains exchange said that in some areas waterlogged soybean pods have sprout or burst before being harvested which will lower Argentina soybean prices. Rains are expected to ease in 6-15 day forecast which will help with harvest progress.
Trump Renewable Fuel Meeting
Following a closed door meeting in the White House, sources say that Trump will NOT implement a cap on renewable fuel credits. The President expressed that he is considering letting exported ethanol count towards the RFS mandate. He also seeks to make E15 available all year long. Senator Cruz considers the meeting a win-win while Senator Grassley was supportive of the efforts to increase higher ethanol blends but expressed caution on the ethanol export plan. Ethanol RINs sold off following the White House meeting.
China Increases Checks on U.S. Pork Imports
WH Group Ltd Director said “ports are opening and inspecting every cargo that arrives.” This compares to “random” checks in the past.
The checks increase the amount of time that the products sit in the port from just days up to two weeks.
USDA attache in Beijing noted in an April 30th report that inspection and sampling efforts were increased.
This news comes after China announced it was stepping up quarantine checks on apples and logs from the U.S. after “detecting pests in the imports”.
Many see these efforts as a warning after trade tensions between the U.S and China have increased.
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